The information technology-business process outsourcing (IT-BPO) industry could be positioned at the lower end of its growth forecast as the unstable currency, growth slowdown for main business centres, and fluctuating growth of providers continue, according to the National Association of Software and Services Companies (Nasscom).
In a study done by Nasscom on Indian companies on global in-house centres and multinationals across different industries such as IT services, BPOs, research & development, engineering and products, it was found out that IT-BPO could likely post a growth of 11 percent and revenue of $75 to 77 billion.
Som Mittal, President of Nasscom, said there are certain factors that can affect the growth guidance of sectors. Every company is in a different environment and may encounter different situations. However, the entire industry needs to consider faster growth verticals such as retail and healthcare.
In a way, some of the top IT services firms were also responsible for the 11 percent growth target as the top four to five providers represent 40-50 percent of the entire export revenue. In line with that, Infosys shared a revenue guidance of only five percent for this fiscal year, and Wipro only grew one to two percent per quarter.
Mitall assured that even with the problems that the industry encountered this year, the outsourcing sector in India will grow.
On the other hand, Sudin Apte, Principal Analyst and Chief Executive at Offshore Insights, said they were able to come up with an 8-10 percent growth rate for the entire outsourcing sector for fiscal year 2013. But individually, some firms will post better numbers.